We recieved a service amounting to Rs 80,000 from a supplier who is based in Mumbai. We are based in Haryana. Now he has issued us with an invoice which has no GST and on enquiring he said that he is not registered for GST as he is a freelancer and his turnover is below 20 lakh and he doesn't wish to get registered. He didn't know about the inter-state requirement. He just provided the service online so didn't care about our location.
We can't do it the reverse charge way as it is inter-state. So how do we handle this invoice. Do we just pay him 80,000 and that's it? Is there any liability on us? He doesn't want get registered as he says he cannot afford to comply every month and has said that he will not undertake inter-state transactions from now one. But what about the one he has already done for us? It is him who is breaking the regulation by not registering but what should we do?
Or is it possible that we pay under reverse charge and show him as coming to our premises in Haryana to work for a few days?
Thanks!
CAclubindia
